1. An automobile manufacturer is interested in determining the relationship between the
size and manufacturer of newly purchased automobiles. One thousand recent buyers of
American-made cars are randomly sampled, and each purchase is classified with respect to
the size and manufacturer of the automobile.
Out of 341 cars of manufacturer A 157 are small, 126 are intermediate, 58 are large.
Out of 192 cars of manufacturer B 65 are small, 82 are intermediate, 45 are large.
Out of 383 cars of manufacturer C 181 are small, 142 are intermediate, 60 are large.
Out of 84 cars of manufacturer D 10 are small, 46 are intermediate, 28 are large.
At α = 0.01 test to determine if the two classifications, manufacturer and size, are
dependent.
Solution:
H0 : Manufacturer and size are not dependent.
H1 : Manufacturer and size are dependent.
Let us calculate expected cell frequencies under the assumption that the classifications are
independent. There are 413 Small, 396 Intermediate, 191 Large automobiles.
413 · 341 396 · 341
Therefore, for 157 we expect = 140.833, for 126 we expect = 135.036,
1000 1000
191 · 341
for 58 we expect = 65.131.
1000
413 · 192 396 · 192
For 65 we expect = 79.296, for 82 we expect = 135.036, for 45 we
1000 1000
191 · 192
expect = 36.672.
1000
413 · 383 396 · 383
For 181 we expect = 158.179, for 142 we expect = 151.668, for 60 we
1000 1000
191 · 383
expect = 73.153.
1000
413 · 84 396 · 84
For 10 we expect = 34.692, for 46 we expect = 33.264, for 28 we expect
1000 1000
191 · 84
= 36.672.
1000
Rejection region: degree of freedom is (3 − 1)(4 − 1) = 6. χ20.01 = 16.81. Test statistics:
(Oi − Ei )2
χ2 =
X
= 45.81
Ei
Since χ2 = 45.81 > 16.81 = χ20.01 we reject H0 and accept H1 : we conclude that
manufacturer and size are dependent..
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